Does a monopoly's ability to price discriminate between two
groups of consumers depend on its marginal cost curve? Why or why
not? Consider two cases: (a) the marginal cost is so high that the
monopoly is disinterested in selling to one group, and (b) the
marginal cost is low enough that the monopoly wants to sell to both
groups.
What role does consumer surplus play in the profitability of price discrimination? A. Price discrimination is only profitable when the economic profit of the firm(s) exceeds consumer surplus. B. Price discrimination is only profitable when there is additional consumer surplus that can be converted to profit. C. Price discrimination is profitable regardless of whether there exists any additional consumer surplus that can be converted to profit. D. Price discrimination is only profitable when there is no additional consumer surplus that can be converted to...